by Air conditioning systems are crucial for creating suitable indoor conditions for commercial, industrial and residential applications. Growing urbanization coupled with increasing disposable income levels has boosted the demand for air conditioned homes and workspaces. Air conditioning systems offer numerous benefits such as temperature and humidity control, improved air quality and thermal comfort.
The Global Air Conditioning Systems Market is estimated to be valued at US$ 339.25 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Air Conditioning Systems Market Size are Jazz Pharmaceuticals, Inc. (Ireland), Daikin Industries Ltd. (Japan), LG Electronics (South Korea), Mitsubishi Electric Corporation (Japan), Panasonic Corporation (Japan), Hitachi Ltd. (Japan), Electrolux (Sweden), Samsung Electronics (South Korea), Lennox International Inc. (U.S.), Carrier (U.S.). Several key players are engaging in new product launches and mergers & acquisitions to strengthen their presence. For instance, in 2021, Mitsubishi Electric completed the acquisition of Zucchetti Centro Sistemi to expand its business in Italy.
The air conditioning systems market provides numerous opportunities such as increased uptake in commercial construction sector, focus on energy-efficient and smart AC systems, and growing retrofit activities. The global construction industry is witnessing strong growth with commercial construction projects gaining momentum in developing nations.
Key players are expanding globally by setting up manufacturing plants and strengthening distribution networks across emerging economies of Asia Pacific, Latin America, Middle East and Africa. Rising construction spending, improving living standards and hot weather conditions in these regions will drive the demand for air conditioning systems.
Market drivers
Rising infrastructure development and construction activities are a key driver for the air conditioning systems market. According to Global Construction 2030, the global construction output is projected to grow by 85% to $15.5 trillion by 2030. Both residential and commercial construction sectors are expanding rapidly across major countries. This will propel the demand for HVAC equipment and air conditioning systems required for various building structures.
PEST Analysis
Political: Government regulations related to energy efficiency and environmental protection are influencing the market. Stringent rules have boosted demand for eco-friendly air conditioning systems.
Economic: Rising disposable incomes and changing lifestyles have increased demand for air conditioners across both residential and commercial sectors. However, high initial costs remain a challenge for lower income groups.
Social: In warm countries, air conditioners are considered necessity rather than luxury. Growing population and urbanization rates have augmented the demand. Lifestyle changes and increasing awareness about indoor air quality are also propelling the adoption.
Technological: Manufacturers are investing in R&D to develop smart and IoT-enabled air conditioners. New technologies allow for remote monitoring and control through mobile apps. AI and machine learning capabilities help optimize performance and energy usage.
Geographical Concentration
The geographical regions where the air conditioning systems market is concentrated in terms of value include Asia Pacific, North America, and Europe. Asia Pacific dominates due to the high demand from countries like China, India and Japan supported by rising incomes, expanding construction activities and warm climatic conditions.
Fastest Growing Region
The region witnessing the fastest growth in the air conditioning systems market is Asia Pacific, especially India and Southeast Asian countries. Rapid urbanization, increasing per capita spending on appliances, growing tourism sector and hot tropical climate are driving the demand up sharply here. Implementation of favorable policies to promote energy efficiency is also boosting the regional market.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
